Thinking you can’t apply for a business loan via mobile? Think again! This guide breaks down how to get the funding you need from your phone, fast.
Imagine this: you need a business loan. It’s 2010. You print an endless stack of financial statements that could deforest a small country, and you prepare to head to a bank. Then, you prepare an outfit only to be received by a manager staring at you with a skeptical eyebrow. Clearly, it was an entire event. Fast forward to today, and you can apply for business loans directly via mobile devices — without the drama. You aren’t required to step foot in an office, and business loans are at the fingertips of everyone unlike the fabled and outdated future vision of business financing.
The “Why Bother?”- Benefits of Convenience
Applying for a business loan via mobile provides more advantages than just the ability to avoid putting trousers on. Forget about the ability to apply for loans without putting on pants, convenience business loans via mobile is an entire new realm and an advantages in its own.
Thankfully, avoiding weeks-long waiting periods for a “maybe” decision is a thing of the past. Nowadays, mobile lenders take a digital-first approach to analyzing the health of your business and can make decisions in minutes. In fact, many platforms make decisions and even disburse funds in just 24 to 48 hours. As a result, this speed can mean the difference between capturing an opportunity and letting it slip away.
If an idea for a new product line pops into your head and it’s 10 PM on a Tuesday, no problem. Need to restock from a supplier while on vacation? No problem. Order inventory on your supplier while vacationing? Relax on your beach chair as you apply for business funding. These scenarios have you, a phone, and good Wi-Fi as the boss for the day.
Let’s be honest, traditional banks can be, shall we say, finicky? They often cater to businesses with a long and flawless credit history. In contrast, fintech lenders back mobile applications for business loans and use a different approach to underwriting. Instead of relying solely on past records, they analyze real-time cash flow and sales figures, thereby giving newer or less-traditional businesses a fighting chance.
Getting everything digitally organized
While we are not at the point were you can magically receive cash by winking at your phone, you are still going to need to put some work in if you want to apply for a business loan via mobile. The good news, how you are going to prepare is all digital work.
Know your numbers: The same way every app has to gather a certain amount of information before making an investment, you also need to know how much you want and if you are going to put it to good use. You a are going to need to gather for mention your recent revenue figures, your major expenses, and some light projections of profits.
Gather your digital paperwork: You do need to put in a little work and it is not going to be as daunting as it sounds. The business mobile application does eliminate some portions of the work by linking directly to your business account with banks through checking and cash flow validation. While they are not going to need PDF uploads, it is still a good idea to have the following ready.
You’ll need your last three to six months of business account statements. In addition, make sure to provide your business registration and EIN. For identity verification, some lenders may also ask for your driver’s license.
The Mobile Application Playbook: A Step-By-Step
Preparing to take the plunge? Here’s an overview of how the workflow for applying for a business loan through mobile devices typically works.
Step 1: Choose Your Lender’s App: Do an Industry Research. The App Store is a jungle. Don’t just click download for the loan app with the best logo. Check for user reviews but look out for bias. Check for lenders that specialize with your business size or industry. Scan through reviews critically. Look up the business’s rating on the Better Business Bureau’s website.
Step 2: The Initial Sign-Up: This is the easy part. For this step, you will download the app and fill out your business basic details which includes your business name, sector, and years in operation.
Step 3: The Secure Data Sync: This is the game changer. The app will ask you to securely link your business bank account. The prompt may seem scary, but the app syncs your data through an encrypted, read-only process.
The loaner will be able to see your finances in their best light. This method is more reliable and quicker than any documents you would upload.
Step 4: The Ask: You will set how much loan amount you want and how you intend to spend it. The algorithm compiles the information from your synced account with the amount you provided and works the magic.
Step 5: Inspect Each Offer With Care: If the lender approves your application, the app will display one or more loan offers. Don’t just click “Accept” in excitement! Make sure to check:
The APR (Annual Percentage Rate): This reflects the total amount of the loan, interest, and any other additional fees.
The Repayment Term: What timeframe does the lender set for repayment?
The Payment Schedule: Will you make payments daily, weekly, or monthly?
The ability to apply for a business loan through mobile devices offers far more than just convenience; it redefines how ambition gets financed. This new system is far more efficient, suitable for the modern era, and more accessible to everyone. While it breaks down persistent barriers, the new system still requires you to be a careful business owner who scans for details and understands the phrases. The difference is, you can now do all that from the control center of your business, the smartphone in your hand. You now have the unprecedented ability to build your empire, and it is literally a matter of click. What are you waiting for?
